Crucial 2012 Annual Report Download - page 85

84
The following table presents IM Flash's distributions to and contributions from its shareholders ("IM Flash" includes both
IMFT and IMFS for all periods prior to April 6, 2012 and includes only IMFT for the period after April 6, 2012):
For the year ended 2012 2011 2010
IM Flash distributions to Micron $ 439 $ 234 $ 278
IM Flash distributions to Intel 391 225 267
Micron contributions to IM Flash 151 1,580 128
Intel contributions to IM Flash 177 — 38
IM Flash sells products to the joint venture members generally in proportion to their ownership interests at long-term
negotiated prices approximating cost. Due to the changes in ownership, our share of IMFS output grew from 51% in the first
quarter of 2011 to 78% in the second quarter of 2012. As a result of our restructuring of IM Flash on April 6, 2012, Intel has no
continuing rights to the output from the IMFS and Virginia facilities. Intel continues to receive output from IMFT in proportion
to its ownership interest at long-term negotiated prices approximating cost and, subsequent to April 6, 2012, also purchases
NAND Flash products from us under a cost-plus supply arrangement. Aggregate sales of NAND Flash products to Intel
(including sales by IMFT at prices approximating cost and sales by us under the cost-plus supply agreement) were
$986 million, $884 million and $764 million for 2012, 2011 and 2010, respectively. Receivables from Intel for sales of NAND
Flash products as of August 30, 2012 and September 1, 2011, were $103 million and $165 million, respectively.
As a result of changes to the timing of the passage of title in the IMFT supply agreement with Intel, effective April 6, 2012,
sales are now recognized upon completion of wafer fabrication, rather than after backend assembly and test are completed. As
a result, we sold $97 million of backend inventories, which generated a one-time increase in NAND sales and reduction in
work in process inventories in 2012.
The following table presents the total assets and liabilities of IMFT and IMFS included in our consolidated balance sheet.
Amounts as of September 1, 2011 included IMFT and IMFS, which were aggregated due to the similarity of their function,
operations and the way our management reviewed the results of their operations. Amounts as of August 30, 2012 included only
IMFT.
As of 2012 2011
Assets
Cash and equivalents $ 157 $ 327
Receivables 78 252
Inventories 67 227
Other current assets 5 11
Total current assets 307 817
Property, plant and equipment, net 1,342 4,121
Other noncurrent assets 36 66
Total assets $ 1,685 $ 5,004
Liabilities
Accounts payable and accrued expenses $ 104 $ 458
Deferred income 10 125
Equipment purchase contracts 58 37
Current portion of long-term debt 6 8
Total current liabilities 178 628
Long-term debt 18 58
Other noncurrent liabilities 129 4
Total liabilities $ 325 $ 690
Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.
The table above included, as of September 1, 2011, assets of $2,999 million and liabilities of $433 million, related to our
IM Flash entities that, subsequent to April 6, 2012, were wholly-owned by us.